# Ligand Pharmaceuticals (LGND.US)

Canonical: https://gigainvestors.com/s/LGND

Analysis as of: 2026-10-16T07:29:49.294Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $298.50 per share; close as of 2026-10-15.

Estimated value: low $110.06 per share, central $115.89 per share, high $123.64 per share. Buy at or below the central value $115.89 per share. Valuation as of 2026-10-16T07:29:49.294Z; scenarios are not confidence intervals.

Expected annual return: 4.4% at the stated quote. About 4.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 3

- Operating margin variation: 2.17×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.48×

- FY2018: 0.65×

- FY2019: 6.71×

- FY2020: 0.23×

- FY2021: 0.43×

- FY2022: 0.02×

- FY2023: 0.09×

- FY2024: -0.14×

- FY2025: 0.18×

- LTM to Jun 2026: 0.35×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 9.5%

- ROIC, second-lowest year: 0.4%

- Typical minus recent gross margin: -5.6 pp

- Typical gross margin (annual median): 92.0%

- Recent gross margin (lower of latest and 3-year median): 97.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.2%

- ROIC including acquisitions, ten-year median: 5.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 12.4%

- FY2018: 39.1%

- FY2019: >100%

- FY2020: 6.6%

- FY2021: 14.9%

- FY2022: 0.4%

- FY2023: 2.3%

- FY2024: -3.1%

- FY2025: 5.8%

- LTM to Jun 2026: 13.1%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 1.51×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $296M

- Net income, five-year total: $196M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 1.8 pp

- Working capital / revenue, change between three-year averages: 17.2 pp

- Working capital / revenue, final three-year average: 34.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.74×

- FY2022: 0.24×

- FY2023: 0.67×

- FY2024: -2.87×

- FY2025: 1.27×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 12.4% vs 2.3%

- Per-share earnings: 0.33 to 2.94 (three-year endpoint medians)

- acquisition spending exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -5.0%

- Ordinary dilution, 5-year annual growth: 3.8%

- Market cap gain: $333M

- Cumulative retained earnings: $1.0B

- Diluted shares, 10-year annual growth: -5.0%

- Diluted shares, 5-year annual growth: 3.8%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 31.2%

- Per-share value change: $2.60

- Per-share value, starting three-year median: $0.33

- Per-share value, ending three-year median: $2.94

- Buybacks concentrated in cheaper years (correlation): 0.22

- Average buyback yield: 2.6%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $552M

- Cumulative net income, 10 years: $977M

- ROIC, first three-year median: 12.4%

- ROIC, last three-year median: 2.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$0.05

- FY2017: $0.33

- FY2018: $3.71

- FY2019: $19.87

- FY2020: -$0.18

- FY2021: $3.31

- FY2022: -$1.98

- FY2023: $2.94

- FY2024: -$0.22

- FY2025: $6.13

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: 4.8%

- Receivables to sales index (DSRI): 0.90×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 94.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.40×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.32×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -10.7%

- FY2017: -12.1%

- FY2018: -4.0%

- FY2019: 44.1%

- FY2020: -4.2%

- FY2021: -1.7%

- FY2022: -22.4%

- FY2023: 0.3%

- FY2024: -10.7%

- FY2025: 4.8%

## Holders

## Price story

Price needs cash profits to grow 20.9% a year for ten years · "Ligand Pharmaceuticals (LGND): Massive XOMA Acquisition Doubles The Royalty Book" (finance.yahoo.com, Sep 2026) · sales +8.4%

Story as of 2026-10-16T09:59:04.034Z; price observation 2026-10-15.

Price needs cash profits to grow 20.9% a year for ten years

- 2025-07-10: Ligand earns $5 million milestone as partner launches molluscum treatment ([investing.com](https://www.investing.com/news/company-news/ligand-earns-5-million-milestone-as-partner-launches-molluscum-treatment-93CH-4129921))

- 2025-08-07: Ligand Pharmaceuticals (NASDAQ:LGND) Surpasses Q2 2025 Earnings Estimates with Strong Royalty Growth ([chartmill.com](https://www.chartmill.com/news/LGND/Chartmill-32695-Ligand-Pharmaceuticals-NASDAQLGND-Surpasses-Q2-2025-Earnings-Estimates-with-Strong-Royalty-Growth))

- 2025-11-19: How Ligand Pharmaceuticals’ Strong Q3 Results and Raised Guidance May Impact LGND Investors ([finance.yahoo.com](https://finance.yahoo.com/news/ligand-pharmaceuticals-strong-q3-results-231447404.html))

- 2026-04-27: Ligand Pharmaceuticals to Buy XOMA Royalty for $39/Share, Lifts 2026 Guidance and EPS Outlook ([finance.yahoo.com](https://finance.yahoo.com/sectors/healthcare/articles/ligand-pharmaceuticals-buy-xoma-royalty-231349961.html))

- 2026-09-04: Ligand Pharmaceuticals (LGND): Massive XOMA Acquisition Doubles The Royalty Book ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/ligand-pharmaceuticals-lgnd-massive-xoma-104405333.html))

### Sales · FY2025–2026

sales +8.4%; source https://www.sec.gov/Archives/edgar/data/886163/000088616326000006/lgnd-20251231.htm; observed 2026-02-27.

- FY2017: $141M 

- FY2018: $251M 

- FY2019: $120M 

- FY2020: $164M 

- FY2021: $242M 

- FY2022: $196M 

- FY2023: $131M 

- FY2024: $167M 

- FY2025: $268M 

- FY2026: $291M 

### Gross margin · FY2026

gross margin 98.6%; source https://www.sec.gov/Archives/edgar/data/886163/000088616326000006/lgnd-20251231.htm; observed 2026-02-27.

- FY2017: 96.2% 

- FY2018: 97.5% 

- FY2019: 90.6% 

- FY2020: 81.4% 

- FY2021: 74.3% 

- FY2022: 73.1% 

- FY2023: 73.3% 

- FY2024: 93.4% 

- FY2025: 97.5% 

- FY2026: 98.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in biotechnology; annual sales are USD 268.1 million.

- Source: https://www.sec.gov/Archives/edgar/data/886163/000088616326000006/lgnd-20251231.htm (filed 2026-02-27); FY2025: revenue 268087000; grossProfit 261499500; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); LGND.US: Ligand Pharmaceuticals Incorporated, a biopharmaceutical company, develops and licenses biopharmaceutical assets worldwide. It offers Pradefovir, Posaconazole, Voriconazole, CAPVAXIVE, NOXAFIL, MenFive, and ZELSUVMI for infectious disease; EVOMELA and KYPROLIS for multiple myeloma; FILSPARI for the treatment of immunoglobulin a nephropathy; PNEUMOSIL, a pneumococcal conjugate vaccine to help fight against pneumococcal pneumonia in children; and QARZIBA to treat neuroblastoma. The company also provides Teriparatide injection product for osteoporosis; RYLAZE, a recombinant erwinia asparaginase for acute lymphoblastic leukemia or lymphoblastic lymphoma in adult and pediatric patients; TZIELD, a CD3-directed antibody indicated to delay the onset of Stage 3 type 1 diabetes in adults and children aged 8 years and older with Stage 2 T1D; and VAXNEUVANCE for the prevention of invasive disease caused by streptococcus pneumoniae serotypes. In addition, it offers Duavee for menopause; Frovatriptan to treat Neurology; FYCOMPA and SESQUIENT for CNS; MEKINIST for cardiology; Nexterone, a captisol-enabled formulation of amiodarone; VEKLURY, an antiviral treatment for COVID-19; and Viviant for osteoporosis. Further, the company develops ACLX-002, Ciforadenant, UGN-301, Viright, MB07133, BOT/BAL, and Lasofoxifene for oncology; Ensifentrine for respiratory disease; QTORIN for rare disease; Sparsentan for kidney disease; VK2809 for hepatology; ANEB-001 for acute cannabinoid intoxication; Reproxalap for opthamology; VK0214 for Rare Disease; and VK5211 for musculoskeletal disorder. The company was incorporated in 1987 and is based in Jupiter, Florida.

### Why customers stay

Margins ranged from 73.3% to 97.5% during 2023–25; it earns 9.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2023: grossProfit / revenue = 73.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: grossProfit / revenue = 93.4%.

- Source: https://www.sec.gov/Archives/edgar/data/886163/000088616326000006/lgnd-20251231.htm (filed 2026-02-27); FY2025: grossProfit / revenue = 97.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); 10-year return on capital observations [[2017,0.12445128193589758],[2018,0.3912812926344376],[2019,2.5267385428570783],[2020,0.0663609931851684],[2021,0.14862099364019898],[2022,0.004170284412953328],[2023,0.02329475523826895],[2024,-0.030861174177586326],[2025,0.05831859366233271],[2026,0.13076985259443222]]; median 0.09540613756053298. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 73% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/886163/000088616326000006/lgnd-20251231.htm (filed 2026-02-27); Gross margin observations: [[2021,0.7425893419004405],[2022,0.7308109760758236],[2023,0.7330901503266979]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 4 of 10 years; bought back USD 15 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2017: growth capex 0; upkeep 7154000; cash acquisitions 26653000; owner earnings 17116000. Growth capex plus acquisitions / owner earnings = 1.55719794344473.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2018: growth capex 0; upkeep 11887000; cash acquisitions 5856000; owner earnings 146152000. Growth capex plus acquisitions / owner earnings = 0.04006787454157316.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2019: growth capex 0; upkeep 2553000; cash acquisitions 11840000; owner earnings 670480000. Growth capex plus acquisitions / owner earnings = 0.017658990573917194.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2020: growth capex 0; upkeep 4458000; cash acquisitions 404884000; owner earnings 20523000. Growth capex plus acquisitions / owner earnings = 19.728304828728742.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2021: growth capex 0; upkeep 8761000; cash acquisitions 0; owner earnings 99323000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2023: growth capex 0; upkeep 53849000; cash acquisitions 10405000; owner earnings 34826000. Growth capex plus acquisitions / owner earnings = 0.29877103313616266.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: growth capex 0; upkeep 19640000; cash acquisitions 0; owner earnings 11567000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/886163/000088616326000006/lgnd-20251231.htm (filed 2026-02-27); FY2025: growth capex 0; upkeep 452000; cash acquisitions 0; owner earnings 157776000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,2997000],[2020,3017000],[2021,15317000],[2022,5004000],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/886163/000088616326000006/lgnd-20251231.htm (filed 2026-02-27); FY2025: cash repurchases 15000000 USD.

### Are managers owners

Insiders own 2.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); LGND.US SharesStats.PercentInsiders = 2.32 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 20.9% yearly over ten years; actual growth was 0.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Ten-year compound average after fade. Initial solved rate 0.2918584054365344. Price 298.5; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 7.322490098739821 → FY2025 7.774514634867448. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $95.73 per share

- 2016-11: $104.40 per share

- 2016-12: $101.61 per share

- 2017-01: $106.01 per share

- 2017-02: $104.63 per share

- 2017-03: $105.84 per share

- 2017-04: $111.17 per share

- 2017-05: $108.28 per share

- 2017-06: $121.40 per share

- 2017-07: $120.91 per share

- 2017-08: $128.87 per share

- 2017-09: $136.15 per share

- 2017-10: $145.35 per share

- 2017-11: $131.85 per share

- 2017-12: $136.93 per share

- 2018-01: $157.62 per share

- 2018-02: $151.89 per share

- 2018-03: $165.16 per share

- 2018-04: $154.85 per share

- 2018-05: $192.23 per share

- 2018-06: $207.17 per share

- 2018-07: $218.33 per share

- 2018-08: $259.69 per share

- 2018-09: $274.49 per share

- 2018-10: $164.81 per share

- 2018-11: $157.77 per share

- 2018-12: $135.70 per share

- 2019-01: $118.10 per share

- 2019-02: $124.08 per share

- 2019-03: $125.71 per share

- 2019-04: $125.85 per share

- 2019-05: $107.38 per share

- 2019-06: $114.15 per share

- 2019-07: $91.51 per share

- 2019-08: $90.91 per share

- 2019-09: $99.54 per share

- 2019-10: $108.81 per share

- 2019-11: $113.00 per share

- 2019-12: $104.29 per share

- 2020-01: $87.81 per share

- 2020-02: $93.60 per share

- 2020-03: $72.72 per share

- 2020-04: $98.57 per share

- 2020-05: $101.57 per share

- 2020-06: $111.85 per share

- 2020-07: $117.18 per share

- 2020-08: $102.00 per share

- 2020-09: $95.32 per share

- 2020-10: $82.45 per share

- 2020-11: $84.37 per share

- 2020-12: $99.45 per share

- 2021-01: $185.35 per share

- 2021-02: $148.22 per share

- 2021-03: $152.45 per share

- 2021-04: $145.89 per share

- 2021-05: $117.70 per share

- 2021-06: $131.19 per share

- 2021-07: $113.51 per share

- 2021-08: $132.30 per share

- 2021-09: $139.32 per share

- 2021-10: $145.94 per share

- 2021-11: $161.92 per share

- 2021-12: $154.46 per share

- 2022-01: $124.63 per share

- 2022-02: $101.22 per share

- 2022-03: $112.49 per share

- 2022-04: $92.86 per share

- 2022-05: $88.91 per share

- 2022-06: $89.22 per share

- 2022-07: $92.03 per share

- 2022-08: $92.39 per share

- 2022-09: $86.11 per share

- 2022-10: $87.65 per share

- 2022-11: $72.90 per share

- 2022-12: $66.80 per share

- 2023-01: $69.70 per share

- 2023-02: $72.14 per share

- 2023-03: $73.56 per share

- 2023-04: $76.35 per share

- 2023-05: $70.08 per share

- 2023-06: $72.10 per share

- 2023-07: $66.93 per share

- 2023-08: $65.77 per share

- 2023-09: $59.92 per share

- 2023-10: $52.29 per share

- 2023-11: $58.31 per share

- 2023-12: $71.42 per share

- 2024-01: $73.10 per share

- 2024-02: $79.35 per share

- 2024-03: $73.10 per share

- 2024-04: $69.89 per share

- 2024-05: $85.05 per share

- 2024-06: $84.26 per share

- 2024-07: $108.99 per share

- 2024-08: $105.80 per share

- 2024-09: $100.09 per share

- 2024-10: $105.70 per share

- 2024-11: $121.47 per share

- 2024-12: $107.15 per share

- 2025-01: $116.55 per share

- 2025-02: $122.23 per share

- 2025-03: $105.14 per share

- 2025-04: $109.86 per share

- 2025-05: $102.19 per share

- 2025-06: $113.68 per share

- 2025-07: $131.58 per share

- 2025-08: $161.71 per share

- 2025-09: $177.14 per share

- 2025-10: $191.31 per share

- 2025-11: $203.18 per share

- 2025-12: $189.07 per share

- 2026-01: $192.10 per share

- 2026-02: $198.31 per share

- 2026-03: $199.65 per share

- 2026-04: $229.45 per share

- 2026-05: $231.96 per share

- 2026-06: $316.09 per share

- 2026-07: $287.54 per share

- 2026-08: $284.10 per share

- 2026-09: $312.37 per share

- 2026-10: $298.50 per share

## Annual estimated value (USD per share)

- FY2016: low $9.94 per share, central $10.74 per share, high $11.80 per share

- FY2017: low $13.54 per share, central $17.08 per share, high $19.14 per share

- FY2018: low $34.05 per share, central $40.20 per share, high $43.79 per share

- FY2019: low $63.72 per share, central $76.58 per share, high $84.06 per share

- FY2020: low $40.13 per share, central $45.96 per share, high $49.70 per share

- FY2021: low $82.45 per share, central $91.13 per share, high $102.68 per share

- FY2022: low $64.62 per share, central $71.83 per share, high $81.42 per share

- FY2023: low $30.88 per share, central $33.84 per share, high $37.77 per share

- FY2024: low $26.36 per share, central $28.08 per share, high $30.38 per share

- FY2025: low $74.17 per share, central $79.45 per share, high $86.48 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/886163/000088616326000006/lgnd-20251231.htm); period 2025-12-31, filed 2026-02-27.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.